West Brom Building Society is making changes to how it assesses mortgage affordability.
The Society will reduce its affordability stress rate by up to 1.15%. These changes mean an average customer could access up to £28,000 more toward the cost of their home, representing a 13% increase for lending above 85% LTV.
This change is designed to support all types of borrowers, especially first-time buyers. For example, a first time buyer earning £50,000 with a 10% deposit could see their borrowing increase by around £21,500, while a home mover earning £75,000 with a 10% deposit could access up to £40,000 more toward their next home.
Alasdair McDonald, head of intermediaries at West Brom Building Society, commented: “Supporting people into homes of their own is at the heart of what we do in the mutual sector. By updating our affordability approach, we’re helping more customers access the borrowing they need in a responsible and sustainable way.”
